1. You are planning on buying $100,000 face value of Australian Commonwealth Government Bonds. The bonds mature on 15 February 2024 and have a coupon rate of 4.75%. If your purchase will settle on 27 April 2012, and the quoted yield for the bond is 3.41%, what is the cash price of the bonds to the nearest dollar?
2. Suppose the current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 5 YTM 3.25% 3.50% 3.90% 4.25% 4.40% The price per $100 face value of a three-year, zero-coupon, risk-free bond is closest to: $93.80 $89.16 $86.39 $90.06.